NSSCNapco Security Technologies, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×), margins widening, and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NSSC?
Napco Security Technologies, Inc. earns 67% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 58 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Security & Protection Services median 13% · 12 months to Q4 2026
- Cash conversion
- 1.55×
Cash conversion · 1.33× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 6.8%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 16% |
| FY2022 | 13% |
| FY2023 | 18% |
| FY2024 | 28% |
| FY2025 | 25% |
| FY2026 | 23% |
Details›
- Gross margin12 months to Q4 2026
- 59%
- Operating margin12 months to Q4 2026
- 23%
- Net margin12 months to Q4 2026
- 21%
- Free cash flow margin
- 29%
- R&D as % of revenue
- 6.8%
- Revenue, trailing twelve months
- $202M
- Free cash flow, trailing twelve months
- $59M
- Net income, trailing twelve months
- $43M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 67%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Security & Protection Services
Ranks #3 of 10 by RyuScore